UN sees weak economic recovery

Eurasia News

The world economy should start to make a weak recovery this year, but the United Nations said Thursday that Japan faces “risks” with its pump-priming spending and saw no end to Europe’s unemployment agony.

The UN revised downward its forecast for the world economy to 2.3% growth this year, followed by 3.1% in 2014. It had previously predicted a 2.4% rise in global gross domestic product (GDP) this year and 3.2% for next year.

The UN World Economic Situation and Prospects report said a recovery would start in the second half of 2013 as the US economy improves.

But it said “several key risks and uncertainties remain, and, if not mitigated, could derail global growth again.”

The latest forecast said the US economy would grow by 1.9% this year and 2.6% in 2014. China would grow by 7.8% this year and fall to 7.7% next year, and Japan by 1.3% in 2013 and 1.6% in 2014.

The UN said the economy in the European Union’s euro area would shrink by 0.4% this year and make a modest recovery to 1.1% growth next year. Africa was predicted to see 5.0% growth this year and 5.4% next year.

For every country and region, the growth prediction has been shaved back because of doubts about tactics being used for recovery.